Governor Schwarzenegger Talks Late State Budget On KVML

Hi, this is Governor Arnold Schwarzenegger with another California Report.

We are now 40 days into the new fiscal year and still California has no budget.

Maybe this is something the legislators are used to because Sacramento has produced just 4 on-time budgets in the last 20 years.

But to taxpayers, the late budget is a disaster.

California has already lost $160 million in savings that could have been achieved if we´d have had a budget on time.

If we go through August without a budget, the lost savings will approach a half a billion dollars.

Now, think about that. A half billion dollars gone because the legislature has not done its job.

In addition, our cash crisis may force the state to take out expensive loans, costing taxpayers several hundred million dollars more in higher borrowing costs.

Now, that´s money that could be going to schools, public safety or transportation but with no budget, it will instead go to Wall Street.

But the legislature seems to be indifferent.

Not only did the legislators take their summer vacation in early July, when the budget was already late but when they finally returned this week, they casually began debating hundreds of bills that had absolutely nothing to do with the budget.

They won´t help the state pay the thousands of state employees and vendors and contractors, who are suffering the impacts of no budget.

They won´t help our cash crisis either. They won´t help us pay the daycare and nursing home operators who are not getting paid because there is no budget.

If you sit and listen to the legislative sessions as they talk about their bills, you would think everything is just fine.

But it´s not fine and that´s why last Wednesday I told the legislators: I´ve had it.

I told them until they send me a responsible budget that includes real and long-term reform, I will not sign any legislation that reaches my desk.

If they continue to send me bills, I will send them right back, with my veto attached.

Let me tell you, the best way we can move forward is for you all to help me.